No one-size-fits-all performance appraisal process
Formal appraisal processes are not always superior in objectiveness and decision quality to more informal ones: a corporate culture encouraging objectiveness and openness to differences can have a stronger and more positive impact than highly structured and fact-based HR processes. Some highly structured decision-making processes can sometimes be too complex, generate cognitive overload and reduce objectiveness. It is therefore highly important to adapt the structure of the process to the level of objectiveness of the culture.
Integrating the impact of the automatic workings of the mind
Imposing a standard performance appraisal process to different companies does not help. The right approach is to surface how people actually process information in their minds and how the corporate culture influences their decisions. It is only by integrating such elements that a performance evaluation process that best fosters objective decision making can be designed.
A fact-based process
Performance criteria aligned with competitive advantages
Owned by management who needs to trust decisions made
A simple process, integrated in regular business operations and supported by the HR IT system
To that end, best-in-class corporations have often automated as much as possible fact gathering and data reporting, leveraging information technology. Managers are therefore involved more in discussing the information than in a tedious and time consuming information gathering process.